Purchase-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, 5254,500, terms n/30. The cost of the merchandise so dis 5152,700. Showcase Co. issues a credit memo for $30,000 as a price adjustment prior to Balboa Co. paying the original invoice. a. Journalize Balboa Co.'s entry for the purchase. If an amount box does not require an entry, leave it blank. b. Journalize Balboa Co.'s entry for the credit memo. If an amount box does not require an entry, leave it blank. C. Journalize Balboa Co.'s entry for the payment of the invoce. If an amount box does not require an entry, leave it blank Sales Tax Transactions Journalize the entries to record the following selected transactions: a. Sold 562,800 of merchandise on account, subject to a sales tax of 5%. The cost of the merchand se so d was 537,500. If an amount box does not require an entry, leave it blank. b. Paid 539,650 to the state sales tax department for taxes collected. If an amount box does not require an entry, leave it blank. Adjusting Entry for Merchandise inventory Shrinkage Paragon Tire Co.'s perpetual nventory records indicate that 52,780,000 of merchandise should be on hand on March 31, 2049. The physical inventory indicates that s2,734,800 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Paragon Tire Co. for the year ended March 31, 20Y9. If an amount box does not require an entry, leave it blank. Customer Refunds and Allowances Zell Company had sales of $1,800,000 and related cost of merchandise solc of 51,150,000 for its first year of operations ending December 31, 20Y3. Zell Company provides customers refunds and allowances for any damaged merchandise. At the end of the year, Zell Company estimates that customers will request refunds and allowances for 1.5% of sales. Assume that on February 3, 20Y4, Zell Company paid a customer a $5,000 cash refund for damaged merchandise. a. Journalize the adjusting entry on December 31, 2023, to record the expected customer refunds and allowances. If an amount box does not require an entry, leave it blank. 20Y3 Dec. 31 EE b. Journalize the entry to record the cash refund. If an amount box does not require an entry, leave it blank. 2014 Feb. 3 Multiple-Step Income Statement On March 31, 2014, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows: $419.000 5547,000 Accumulated Depreciation-Building Administrative Expenses 140,000 302,000 1,397,000 Merchand se Inventory Notes Payable Office Supplies Salaries Payable Building 11.000 Cash 98,000 4,000 Cost of Merchandise Sold 2,123.000 Sae 3,582,000 Interest Expense 6,000 400,000 Selling Expenses Store Supplies Kathy Melman, Capital 887,000 50,000 Kathy Melman, Drawing 98,000 a. Prepare a multiple-step income statement for the year ended March 31, 20Y4. Danns Furnishings Company Income Statement For the Year Ended March 31, 2014 Gross profit S Expenses: W Total expenses Other expense: b. What is a major advantage of the multiple-step income statement over the single-step income statement? Purchase-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, 5254,500, terms n/30. The cost of the merchandise so dis 5152,700. Showcase Co. issues a credit memo for $30,000 as a price adjustment prior to Balboa Co. paying the original invoice. a. Journalize Balboa Co.'s entry for the purchase. If an amount box does not require an entry, leave it blank. b. Journalize Balboa Co.'s entry for the credit memo. If an amount box does not require an entry, leave it blank. C. Journalize Balboa Co.'s entry for the payment of the invoce. If an amount box does not require an entry, leave it blank Sales Tax Transactions Journalize the entries to record the following selected transactions: a. Sold 562,800 of merchandise on account, subject to a sales tax of 5%. The cost of the merchand se so d was 537,500. If an amount box does not require an entry, leave it blank. b. Paid 539,650 to the state sales tax department for taxes collected. If an amount box does not require an entry, leave it blank. Adjusting Entry for Merchandise inventory Shrinkage Paragon Tire Co.'s perpetual nventory records indicate that 52,780,000 of merchandise should be on hand on March 31, 2049. The physical inventory indicates that s2,734,800 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Paragon Tire Co. for the year ended March 31, 20Y9. If an amount box does not require an entry, leave it blank. Customer Refunds and Allowances Zell Company had sales of $1,800,000 and related cost of merchandise solc of 51,150,000 for its first year of operations ending December 31, 20Y3. Zell Company provides customers refunds and allowances for any damaged merchandise. At the end of the year, Zell Company estimates that customers will request refunds and allowances for 1.5% of sales. Assume that on February 3, 20Y4, Zell Company paid a customer a $5,000 cash refund for damaged merchandise. a. Journalize the adjusting entry on December 31, 2023, to record the expected customer refunds and allowances. If an amount box does not require an entry, leave it blank. 20Y3 Dec. 31 EE b. Journalize the entry to record the cash refund. If an amount box does not require an entry, leave it blank. 2014 Feb. 3 Multiple-Step Income Statement On March 31, 2014, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows: $419.000 5547,000 Accumulated Depreciation-Building Administrative Expenses 140,000 302,000 1,397,000 Merchand se Inventory Notes Payable Office Supplies Salaries Payable Building 11.000 Cash 98,000 4,000 Cost of Merchandise Sold 2,123.000 Sae 3,582,000 Interest Expense 6,000 400,000 Selling Expenses Store Supplies Kathy Melman, Capital 887,000 50,000 Kathy Melman, Drawing 98,000 a. Prepare a multiple-step income statement for the year ended March 31, 20Y4. Danns Furnishings Company Income Statement For the Year Ended March 31, 2014 Gross profit S Expenses: W Total expenses Other expense: b. What is a major advantage of the multiple-step income statement over the single-step income statement